Leaders Index 3-5

The market opened strong today and held it’s gains to finish near the highs of the session. There was real strength in the major averages today as they rose between .87% on the NYA and 1.32% on the COMPQ. Volume was higher on the Nasd and slightly lower on the NYSE. This produced a legitimate FTD on the Nasd and put the market back into a confirmed rally. All the major averages made new highs for the move today. The MEM went to +6 or fully invested with the power trend on. Leading stocks acted very well as more quality stocks broke out on volume. Because of the FTD and the fact that the small list of breakouts was acting so well I thought a new leaders index was warranted. The new index has 22 stocks in 18 different industry groups. It has really taken off in the last five days and advanced 2.89% today on very heavy volume. The volume was so high because several stocks, such as QIHU, ALK, and EVER rose on big volume. The advance in quality stocks was very widespread and only six stocks in the IBD 50 were down. The rally is clearly on again and the long side is the place to be. Jerry